Lawsuits underscore issues of computer privacy

Monday

Mar 18, 2013 at 12:01 AMMar 18, 2013 at 6:06 AM

ATLANTA - Lawsuits are mounting against rent-to-own giant Aaron's and its franchisees over allegations the company used embedded software to spy on customers, including copying their passwords and snagging photos and videos of private moments.

ATLANTA — Lawsuits are mounting against rent-to-own giant Aaron’s and its franchisees over allegations the company used embedded software to spy on customers, including copying their passwords and snagging photos and videos of private moments.

But cybersecurity experts say consumers better get used to digital intrusion. Privacy in today’s world of all-things-Internet is fast becoming a myth.

“Electronic privacy should not be assumed by anyone,” said David Barton, the principal of the Atlanta-based cybersecurity firm UHY LLC.

“Free email services should not be considered private or secure. Terms of service for social media generally force you to give up most rights to privacy in exchange for using the service. The only way to truly maintain your privacy is to stay away from computers and use cash to pay for everything.”

Customers of Aaron’s filed class-action lawsuits against franchisees of the Atlanta-based company in Georgia and California this month as well as an individual complaint in Georgia against the company and one of its franchisees in the state of Washington. The legal action follows another class-action suit filed in Pennsylvania in 2011 and other complaints over the past two years.

At issue is software by Designerware LLC, a Pennsylvania software company that has been forced into bankruptcy. The software was included on laptops and desktops rented from Aaron’s so that the company and its franchisees could recover unreturned computer equipment.

But the lawsuits allege the software was turned on to spy on paying customers — regardless of their rental status — and that more than 180,000 pieces of ill-gotten customer information are being stored on Aaron’s computers.

The captured information, according to the suits, include passwords to email, social-media websites and financial institutions; medical records; and Social Security numbers. They also claim pictures of children, partially clothed individuals and couples in intimate moments were also taken.

The suits seek to get Aaron’s to pay for any adjustments consumers have to pay for repairing credit problems brought on by the alleged activities — including new credit and bank cards — and monetary and punitive damages and attorney fees. No specific settlement target has been set.

The suits also maintain that customers were never told about the software.

Maury A. Herman, the managing partner of Atlanta-based Herman Gerel LLP, which has filed many of the lawsuits, said even after Aaron’s became aware of the issues, the company did not prohibit its franchisees from using the software.

Herman said both Georgia and the federal government have statutes protecting consumers’ privacy, including the Electronic Communications Privacy Act.

“Even if they felt there was a reason to activate (the software), it would be absolutely illegal because they never told their customers it existed,” he said.